Targeted Fuel Subsidy Expected To Be Included In Revised Budget 2023

According to The Edge, a targeted fuel subsidy will be included in the revised Budget 2023, which will be tabled in the Dewan Rakyat on February 24 by finance minister and prime minister Datuk Seri Anwar Ibrahim. The issue of targeted subsidies has come up several times over the years. Anwar revealed in November that relevant government ministries had been given time to assess the impact of such a move.

According to Sailesh K Jha, chief economist and head of market research at RHB Research Group, Malaysia is expected to maintain a strong business cycle and see a decrease in core consumer price index (CPI) inflation in the first half of this year. Furthermore, as the global economy slows, commodity prices are expected to remain stable in the first half of 2023. “Our view is that the re-opening of China is unlikely to have a significant impact on economic activity in the giant economy and global growth in 1H2023, the timing is appropriate for a reduction in fuel subsidies to be announced on February 24,” he said.